Anthropology and Rural Development

This assignment delves into the crucial role of anthropology in shaping effective strategies for rural development. It examines various theoretical perspectives, including gender, institutions, and economic development, as they relate to rural contexts. The analysis draws upon influential works by scholars like Benería, Chang, Escobar, and Lin, offering a comprehensive understanding of how anthropological insights can contribute to sustainable and equitable rural transformation.

Development
Economics and Policy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Development Issue.................................................................................................................2
Development Models..............................................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Development economics is the branch of economics, which studies the aspects of low
income countries in context of growth and progress. Fluctuation in the condition of these
countries affects the economic development and standard of living of countrymen. Development
economics identifies the causes, effects and methods to bring improvements in Market
conditions, macro-economic indicators, social scenario in terms of health, education and
employment, domestic and international policies etc. As per the demand and suitability, different
strategies are adopted by statisticians and political experts to bring transformation in the social
and political structure (Benería, Berik and Floro, 2015). In order to analyse the development path
of a country, India is taken into account. India has been embarked upon the path of development
since independence. Its economy has undergone significant shifts in its economy post world war
II period. With the inheritance of independence, India entered into the era of immense
opportunities and challenges achieving growth and development. There has been seen significant
correlation between the political freedom and economic growth. Since gaining independence,
basic foundation was created to move upon the path of development in forms of set of activities
and objectives (Myrdal, 2013).
With an aim to enhance the productivity which is considered as the source of attaining
desired economic outcomes, various steps have been taken by the country (Lockwood, 2015).
Among them, there are many factors that have contributed in the development such as industrial
revolution, systematic and structured planning in the form of five year plans, advancement in
technology, capital formation and many others. Moreover, there are some issues which were
faced by the country in context of development and progress which has pace down the growth.
Few of them are instability in the exchange rate values, below the mark standards of social
overheads such as education and health, inefficient infrastructure, balance of payment
deterioration due to heavy debts, existence of inequalities and less productive agriculture
(MacBean, 2011). Among all the mentioned factors, inefficiency in the agriculture is the crucial
factor that has inhibited the growth and development. Agriculture has been the core occupation
of India since its beginning in 9000 BCE. At present 60% of land in India is arable land. With
the significant amount households depending upon it, 50% of the workforce is engaged in
agriculture (Pearce, Barbier and Markandya, 2013). In-spite of having considerable amount of
people engaged in it the total contribution of agriculture and its allied services in GDP are around
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14%. The report discusses the crucial development issue that is agriculture and its effect on the
development path of Indian economy. For that purpose, two models are taken into account that
are Johnston and Mellor model and Lewis unlimited supply of labour model (Lockwood, 2015).
Development Issue
For the study, inefficient agriculture in India is taken into account. It has been playing
vital role in the Indian economy due to its consideration as the principle means of livelihood. In
many ways people are dependent on the growth and development of agriculture. Since
independence, when India was empowered to control all the factors of production to
development sectors such as industry, agriculture and others, various steps have been taken by
the government. But due to many reasons, development is not with the required growth rate and
the sector is still in the underdeveloped state. The major development issues related to the growth
of agriculture in India are:
 Rainfall and Irrigation
Indian has been experience the monsoon climate which is largely dependent on the
monsoon rains for the fulfilment of need of water in the country for various purposes. It is widely
seen that, there is fluctuating trend in the rainfall and water availability which significantly affect
the agriculture (Lin, 2011). The next source of water for the agricultural activities is the
irrigation facilities provided by the government and other organisation. Further, irrigation in the
important agricultural input required for the growth. The use of conventional methods for
irrigation, lack of knowledge and in sufficiency of administration with respect to providing
required irrigation leads to the failure of fulfilment of need.
 Seeds
The fundamental requirement for the success of agricultural activities is the availability
of proper and specialised seeds of crops. With respect to seeds two process are important, that
are production and distribution of the assured quality seeds. Inadequate availability of quality
seeds hinders the process of recognizing potential for growth in the agricultural production.
 Manures and fertilizers.
In order to enhance the efficiency and productivity of the soil, manures and fertilizers
play vital role (Liedholm and Mead, 2013). Indian soil has been used from many years for the
production of crops and other agricultural products without proper care taken for replenishment.
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With the aim to get the optimum level of yielding, it is imperative to provide nourishment in the
form of manures and fertilizers (Komlos, 2014).
 Lack of mechanisation
To undergo several agricultural activities, there is the requirement of different forms of
mechanisation. It is processed by using tools and implements by the farmers. In India, in-spite of
considerable amount of technological advancements, farmers are using conventional tools for the
processes such as ploughing, sowing, irrigating, weeding, threshing and transporting crops.
 Soil Erosion
One of the major problem associated with the low growth in the agricultural production is
the erosion of soil. It results from the factors such as less rainfall, deforestation and improper
care. Erosion of soil leads to the loss of fertility in the soil of particular area making the
particular place giving lees agricultural outputs (Hassan, Sanchez and Yu, 2011).
 Storage facilities
Along with various other processes such as production, transportation, procurement and
selling, storage of the agricultural inputs and outputs play crucial role in regulating the
agricultural activities. Lack of proper storage facilities leads to the significant loss the producers
such as farmers and their institutes associated with it.
 Lack of knowledge and research
Farmers who are the integral part of Indian agriculture, are not possessing sufficient
amount of knowledge to utilize its available resources in the optimum manner. They are not
endowed with the knowledge of different quality of seeds, process that are to be used to undergo
several agricultural activities, schemes and programs started by government and other
organisations for the benefit of farmers (Escobar, 2011).
 Scarcity of capital
In order to enhance the efficiency and productivity of the agricultural sector, it requires
the sufficient amount of capital ad investment. Due to the unavailability of sources and means,
agriculture is unable to get the required amount of finances. Further, it is confined to the
operations and involvement of government body only which further hinders the growth and
development.
 Technologically less advanced
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Due to changing climatic and atmospheric conditions, it is the requirement of the use of
better techniques and methods. India progressing in other sectors is also making efforts in
bringing improvements in the processes and methods adopted in the agricultural practices in
order to minimize the cost and increase benefits (Dobb, 2012). Better there is large scope of
improvement with respect to the use of the latest technology and equipment.
Development Models
Johnson and Mellor Model
To demonstrate the impact of slow growth of agriculture on development and stability of
the economy is mentioned through the use of Johnson and Mellor model. This theory states the
importance of agriculture in the growth of country impacting different sector in which country is
engaged. India is an agrarian economy largely dependent of agricultural activities in terms of
employment ratio. He has given categories with respect to it to explain it.
 Domestic consumption
The main purpose of agriculture is to fulfil the needs of country for the food and other
related requirements. India is sufficient in this respect with having around 159.7 million hectors
of arable land to growth crops for the fulfilment of domestic needs and also it there is surplus
then it is utilized to get export earnings (Coale and Hoover, 2015). India has been among the
leading producers in many of the crops. In-spite of these attractive figures, India fails to fulfil the
needs of people living in the country due to reasons such as high prices, lack of availability and
reach and many.
 Export of farm products and other agricultural goods
Agriculture also enables the country like India to get foreign exchange earnings through
the export of farm products and other related goods. But India is getting only 10% foreign
earnings from this sector.
 Create money flow
Money generated through the various activities processed in the agricultural sector makes
the formation of capital through the effective means. The money generated from this sector is
utilized for the use in other areas of economy (Chang, 2011).
 Industrial production
Industry of the country is largely dependent on the availability of agricultural raw
materials and other related goods. Along with the core industry working, operating in this
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industry is associated with the use and transformation of agricultural raw materials such as cotton
and jute cloth is obtained from their respective plants (Cairncross, 2013).
 Transfer of man power
One of the crucial use of this sector is there is the occurrence of transfer of man power
from one sector to the other. It refers to the transfer of subsistence worker from agriculture to the
industrial sector.
Lewis unlimited supply of labour model
One of the prominent development theory stated by Arthur Lewis consists of two
economies that are rural agriculture and urban manufacturing sector. This model demonstrates
the structural change that occurs in the economy from the transformation of traditional economy
to the industrialized. According to this theory there is fixed amount of land available and with
the increase in the population, average number of people working on per hector of land
increases. This situation is related to the increasing population of India. When density of persons
with comparison to land increases, there is the gradual decrease in the marginal product due to
less availability of work with the farmers (Butlin, 2013). This further decreases the marginal
returns to the farmers. It raises disguised unemployment and subsistence farming. This is the
fundamental reason of transfer of man power from one industry to the other in search of better
options. Lewis has stated with reference to the developing countries that the regions where there
is the existence large amount of subsistence farming, reduced marginal product and returns,
people from agriculture shifts to the manufacturing sector to avail the benefits. Further, there is
the existence of relatively higher amount of wages granted to the workers that is around 30%
premium. Hence workers starts migrating to the manufacturing activities. Further, the focus of
the theory is laid on the process in which the whole economic system expands the economic
system with capital accumulation, income distribution and growth and relative prices of
commodities (Besley and Persson, 2011).
Assumptions of the Development model in relation to the case study of India
 There is the availability of surplus of unproductive labour in agriculture sector of
developing economies
In countries like India there immense amount of unproductive labour due to high
population. Low marginal returns and products accounts due to the factors such as fragmented
land holdings, use of less advanced technology and other related factors.
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 Workers get attracted towards manufacturing and industrial sector
Due to many inhibits in the growth and marginalized income earning makes the workers
attracted towards the manufacturing sector. In India due to systematic and structured planning
has developed the industrial sector to the level which provides large amount of benefits to
workers such as sufficient wages, working and growth opportunity (Benería, Berik and Floro,
2015). Further there is relatively consistent income generation in industries as compared to
agriculture where there is uncertainty in the returns.
 Manufacturers are making profits
The entrepreneurs who hires services of workers both from the urban areas along with the
rural agricultural and subsistence sector. In this industry there is the wage rate fixed up-to some
extent and entrepreneur charge prices of product higher than that enables them to earn significant
amount of profits. The profits and capital generated in that is reused and is invested in some
other sector to generate more revenue.
 Transformation of traditional economy to the manufacturing sector
The last assumption laid down by Arthur Lewis states that with process of transferring of
workers from the subsistence sector to the industrial sector, gradually the economy get
transformed from the traditional agrarian economy to the industrial one whose major activities
are related to manufacturing, plantations, mines and other related (Barlett, 2013).
There has been significant impact seen in the economy of India with the transfer of
workers from agricultural sector to the industrial sectors. It is explained by using certain
parameters.
 Non-Availability of efficient workers in agriculture
As the people lining in rural sectors are moving to urban areas in search of better
opportunities, there is the shortage of workers in the agricultural areas. This further increases the
wages of workers living in this subsistence sector giving rise to the prices of food items and
agricultural goods. This has also significantly affected the production of crops and other. It can
be improved by conducting programs and sessions to increase the knowledge of farmers and
other agricultural workers (Barbier, 2013).
 Capital formation
Greater availability of workers in manufacturing sector has increased the production of
industrial goods. Providing lucrative profits to the manufacturers and traders has made the
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expansion of this zone very fast further increasing the revenues for the country. From the
economic data it is found that manufacturing sector accounts maximum share in the GVA (Gross
Value Addition) of the economy. Utilizing the availability of finances will accrue desired results
in other sectors such as agriculture, infrastructure and many more. It will enable the overall
growth in place of development confined to the particular sector.
 Technological advancements
It has led the advancement in technology of the sector with significant improvements
such as better use of equipment, the latest technologies (Ray, 2016). Further capital arranged
from the industrial sector can be used for further advancements in the agricultural sector.
CONCLUSION
Development economics studies the ways adopted by the country to improve the
conditions prevailing with respect to certain components. The present study has been prepared
with respect to the selected country India. The report is prepared to elucidate the development
issues encountered in the development path of the country. For the purpose inefficient agriculture
as the development issue is taken into account which is explained through two development
theories that are Johnson and Mellor Model and Lewis model of unlimited supply of labour. J
and M model has explained the impact of agriculture on economy of country such as to fulfil the
needs of countrymen for food, provide raw material for the industrial sector, generate revenues
and foreign exchange earnings for the country, providing man power supply to other sectors and
many other related whereas Lewis model is the dualistic model which has described the
transformation of agrarian economy into the industrialist. From the study it has been articulated
that certain improvement will improve the conditions.
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REFERENCES
Books and Journals
Barbier, E.B., 2013. Economics, Natural-Resource Scarcity and Development (Routledge
Revivals): Conventional and Alternative Views. Routledge.
Barlett, P.F. ed., 2013. Agricultural decision making: Anthropological contributions to rural
development. Academic Press.
Benería, L., Berik, G. and Floro, M., 2015. Gender, development and globalization: economics
as if all people mattered. Routledge.
Besley, T. and Persson, T., 2011. Pillars of prosperity: The political economics of development
clusters. Princeton University Press.
Butlin, N.G., 2013. Investment in Australian economic development, 1861-1900. Cambridge
University Press.
Cairncross, A.K., 2013. Factors in economic development. Routledge.
Chang, H.J., 2011. Institutions and economic development: theory, policy and history. Journal of
Institutional Economics, 7(04), pp.473-498.
Coale, A.J. and Hoover, E.M., 2015. Population growth and economic development. Princeton
University Press.
Dobb, M., 2012. Soviet economic development since 1917. Routledge.
Escobar, A., 2011. Encountering development: The making and unmaking of the Third World.
Princeton University Press.
Hassan, M.K., Sanchez, B. and Yu, J.S., 2011. Financial development and economic growth:
New evidence from panel data. The Quarterly Review of economics and finance, 51(1),
pp.88-104.
Komlos, J., 2014. Nutrition and economic development in the eighteenth-century Habsburg
monarchy: an anthropometric history. Princeton University Press.
Liedholm, C.E. and Mead, D.C., 2013. Small enterprises and economic development: the
dynamics of micro and small enterprises. Routledge.
Lin, J.Y., 2011. New structural economics: a framework for rethinking development. The World
Bank Research Observer. 26(2). pp.193-221.
Lockwood, W.W., 2015. Economic development of Japan. Princeton University Press.
MacBean, A., 2011. Export instability and economic development (Vol. 45). Routledge.
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Myrdal, G., 2013. The Political Element in the Development of Economic Theory: A Collection
of Essays on Methodology (Vol. 7). Routledge.
Pearce, D., Barbier, E. and Markandya, A., 2013. Sustainable development: economics and
environment in the Third World. Routledge.
Online
Ray., D., 2016. Development Economics. [Online]. Availaible
through:<http://www.econ.nyu.edu/user/debraj/Papers/RayPalgrave.pdf>. [Accessed on
4th March 2016].
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